Trusts law overhaul passes third reading
Minister of Justice
Pānui Pāpāho
Media
Statement
24 July 2019
Trusts law overhaul passes third reading
A Bill to make trust law easier to understand will become law, says Justice Minister Andrew Little.
The Trusts Bill will replace the Trustee Act 1956 with a clear, modern statement of the law relating to trusts.
“Trusts are a common part of our legal infrastructure and are used by New Zealanders to manage their assets. It is important that people can get information about the law so that they can understand their rights and obligations,” says Andrew Little.
Principal
changes include:
• clarification of key features of a
trust and the duties of trustees
• clear rules about
when trustees are required to provide information to
beneficiaries so that beneficiaries can enforce their
rights
• practical and flexible trustee powers that
allow trustees to manage and invest trust property in the
most appropriate way
• options for removing and
appointing trustees without having to go to court in
straightforward cases
• modern dispute resolution
procedures
• permitting amendments to certain financial
and commercial trusts to enable specified provisions of the
Bill to not apply to those trusts.
The Bill will take
effect 18 months after it receives Royal Assent and becomes
an Act of
Parliament.